Aarti Pharmalabs Limited · NSE:AARTIPHARM
Aarti Pharmalabs — Q3 FY2025 Earnings Presentation
33 slides from Aarti Pharmalabs's earnings presentation, Feb 6, 2025
Slide 1: Results Presentation filing letter to stock exchanges
February 06, 2025 To, To, Listing/ Compliance Department Listing/ Compliance Department BSE LTD. National Stock Exchange of Phiroze Jeejeebhoy Towers, India Limited Dalal Street, “Exchange Plaza”, Plot No. C/1, Mumbai - 400 001 G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 SCRIP CODE:
Slide 2: Investor Presentation February 2025
INVESTOR PRESENTATION February 2025
Slide 3: Snapshot
SNAPSHOT 200+ Products 500+ Global Clients State-of-the-art 3 R&D facilities 58 Patents Filed 50+ Export Countries Manufacturing 6 Units 47 US DMF 2100+ Employees 3 USFDA Units 25 CEP Global 15-20% Market Share 0.18x Net Debt/Equity A+ Credit rating in Xanthine 2 Aarti Pharmalabs Limited
Slide 4: Company Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 5: Company Overview
COMPANY OVERVIEW • Aarti Pharmalabs Limited (APL) formerly known as Aarti Organics was established in 1984 as a wholly owned subsidiary of renowned Aarti Industries Limited. Got demerged in October 2022 STANDLAONE REVENUE (INR Mn) & EBITDA into a separately listed entity (effective July 2021) MARGIN
Slide 6: Key Milestones
2022 KEY MILESTONES • Expanded block for CSD in Vapi and API in Tarapur units • Acquired land at Atali for future growth • Successfully demerged the pharmaceutical business of Aarti Industries Limited to Aarti Pharmalabs Limited 2017 12 Successfully completed Cofepris, Mexico audits at Unit 4 11 202
Slide 7: Board of Directors
BOARD OF DIRECTORS Shri Rashesh C. Gogri Smt. Hetal Gogri Gala Shri Narendra Salvi Shri Rajendra V. Gogri Shri Parimal H. Desai Smt Nehal Garewal Chairman Vice Chairperson & MD Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Shri Rashesh Gogri was appointed Gra
Slide 8: Geographical Presence
GEOGRAPHICAL PRESENCE Sweden Russia Canada United Kingdom Netherlands Ireland Poland Germany France Austria Switzerland Slovenia Italy USA Spain Greece Turkey China Japan South Korea TunisiaLebanon Iraq Pakistan Nepal Saudi Egypt Mexico Arabia UAE INDIA Bangladesh Hong Kong Puerto Rico Yemen Thailan
Slide 9: Manufacturing Presence
MANUFACTURING PRESENCE Atali Vapi - Unit II Tarapur - Unit III, IV, V, VI Dombivli - Unit I Gujarat Mumbai Maharashtra LOCATION MANUFACTURING UNITS CERTIFICATIONS & AUDIT DATE Dombivali Unit - I (API, Intermediates, CDMO) USFDA - Jun 2022 Unit - II (API, Intermediates, CDMO) Vapi USFDA - Sep 2009, A
Slide 10: Manufacturing Capabilities
MANUFACTURING CAPABILITIES END TO END CAPABILITIES UNDER ONE UMBRELLA Hydrogenation facilities from lab-scale to 20+ years of experience in pharmaceuticals manufacturing scale (0.1-10 KL reactors) manufacturing for global clients Impeccable regulatory track record and facilities Cryogenic reactors o
Slide 11: Research & Development
RESEARCH & DEVELOPMENT 3 150+70+ 3 State of the art Process for more than 150 R&D Centers at intermediates developed Maharashtra & Gujarat and manufactured on kilo- lab scale 100+ 6% 70+ 3 7 3 New products to be R&D Spend (as a PhDs developed in next few percent of API & years CMDO sales ) in FY 24
Slide 12: Business Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 13: Key Business Segments
KEY BUSINESS SEGMENTS QUARTERLY REVENUE BREAK-UP 44.1% 52.6% 48.9% Xanthine Derivatives & Allied Products API & Intermediates 43.2% 36.9% 36.1% CDMO/CMO 11.3% 14.2% 12.7% FY24 Q3-FY24 Q3-FY25 CDMO/CMO API & Intermediates Xanthine derivatives
Slide 14: Xanthine Derivatives & Allied Products
XANTHINE DERIVATIVES & ALLIED PRODUCTS • Aarti Pharmalabs is the largest Indian manufacturer of Xanthine Derivatives, including Caffeine, Theophylline Anhydrous, Aminophylline, Etophylline, and Theophylline that find applications in beverages, nutraceuticals, and pharmaceutical industries. • Largest
Slide 15: API & Intermediates
API & INTERMEDIATES • Aarti Pharmalabs specializes in the development and manufacturing of Highly Potent Active Pharmaceutical Ingredients (HPAPIs), catering to the demand for critical drugs used in oncology, corticosteroids, and cytotoxic medicines. MARKET SEGMENTATION (Q3-FY25) • Backward integrat
Slide 16: CDMO & CMO
CDMO & CMO • Aarti Pharmalabs is one of the leading small molecule Contract Development and Manufacturing Organization (CDMO/CMO) in India. • Offers services for drug substance projects including NCEs, APIs, RSMs, and Intermediates to global innovative pharmaceutical and biotech companies, Currently
Slide 17: Strategic Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 18: Growth Drivers
GROWTH DRIVERS Increasing capacities of existing products and, adding 100+ new value-added products in next few years Developing and exploring more opportunities of Increasing presence in CDMO & CMO with regulated markets innovators for APIs and intermediates Ongoing Capex for the Atali project 4 Ad
Slide 19: Future Growth Strategy
FUTURE GROWTH STRATEGY FUTURE OUTLOOK Plan to strengthen Fortify market leading API and CDMO Aim to achieve Expect EBITDA position in the segment by long-term goal of growth of Xanthine segment by introducing more about 15% annual approximately brownfield capacity value-added products growth in the
Slide 20: ESG
ESG E G • Hazard Identification and Risk Assessment (HIRA), Hazardous Area Classification (HAC) and work permit system in place • Safety Trainings - Induction, On ENVIRONMENT the job, Classroom, Demos GOVERNANCE • ISO 14001 : 2015 certification • Incident management - “Safety • Robust Compliance Mon
Slide 21: Financial Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 22: Quarterly Consolidated Income Statement
QUARTERLY CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) Q3-FY25 Q2-FY25 Q-O-Q Q3-FY24 Y-O-Y Operational Revenue 5,378 4,580 17.4% 4,487 19.9% Operating Expenses 4,092 3,643 12.3% 3,530 15.9% EBITDA 1,286 937 37.2% 957 34.4% EBITDA Margin (%) 23.91% 20.46% 345 Bps 21.33% 258 Bps Depreciation and
Slide 23: YTD Consolidated Income Statement
YTD CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) 9M-FY25 9M-FY24 Y-O-Y Operational Revenue 15,513 13,468 15.2% Operating Expenses 12,325 10,784 14.3% EBITDA 3,188 2,684 18.8% EBITDA Margin (%) 20.55% 19.93% 62 Bps Depreciation and Amortisation 641 541 18.5% Finance costs 203 125 62.4% Other In
Slide 24: Historical Consolidated Income Statement
HISTORICAL CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) FY23 FY24 9M-FY25 Operational Revenue 19,452 18,526 15,513 Total Expenses 16,031 14,666 12,325 EBITDA 3,421 3,860 3,188 EBITDA Margins (%) 17.59% 20.84% 20.55% Depreciation and Amortisation 625 732 641 Finance costs 211 172 203 Other Inco
Slide 25: Quarterly Standalone Income Statement
QUARTERLY STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) Q3-FY25 Q2-FY25 Q-O-Q Q3-FY24 Y-O-Y Operational Revenue 4,709 3,773 24.8% 3,730 26.2% Operating Expenses 3,559 2,925 21.7% 2,848 25.0% EBITDA 1,150 848 35.6% 882 30.4% EBITDA Margin (%) 24.42% 22.48% 194 Bps 23.65% 77 Bps Depreciation and Am
Slide 26: YTD Standalone Income Statement
YTD STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) 9M-FY25 9M-FY24 Y-O-Y Operational Revenue 12,417 10,873 14.2% Operating Expenses 9,584 8,485 13.0% EBITDA 2,833 2,388 18.6% EBITDA Margin (%) 22.82% 21.96% 86 Bps Depreciation and Amortisation 582 487 19.5% Finance costs 193 122 58.2% Other Income
Slide 27: Historical Standalone Income Statement
HISTORICAL STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) FY23 FY24 9M-FY25 Operational Revenue 15,112 15,021 12,417 Total Expenses 12,028 11,560 9,584 EBITDA 3,084 3,461 2,833 EBITDA Margins (%) 20.41% 23.04% 22.82% Depreciation and Amortisation 558 660 582 Finance costs 205 166 193 Other Income
Slide 28: Historical Consolidated Balance Sheet
HISTORICAL CONSOLIDATED BALANCE SHEET ASSETS (INR Mn) FY23 FY24 H1-FY25 EQUITY & LIABILITIES (INR Mn) FY23 FY24 H1-FY25 Non-current assets Equity share capital 453 453 453 Property, plant and equipment 9,227 9,942 10,944 Equity Share Capital Pending allotment - Capital work-in-progress 622 785 1,160
Slide 29: Historical Standalone Balance Sheet
HISTORICAL STANDALONE BALANCE SHEET ASSETS (INR Mn) FY23 FY24 H1-FY25 EQUITY & LIABILITIES (INR Mn) FY23 FY24 H1-FY25 Assets Equity & Liabilities Non-current assets Equity share capital 453 453 453 Property, plant and equipment 8,471 9,160 10,167 Equity Share Capital Pending allotment - - Capital wo
Slide 30: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS OPERATIONAL INCOME (INR Mn) EBITDA (Mn) & EBITDA MARGINS (%) PAT (Mn) & PAT MARGINS (%) 19,452 18,526 3,860 15,513 3,421 3,188 2,169 1,935 1,841 20.84% 20.55% 17.59% 11.71% 11.87% 9.95% FY23 FY24 9M-FY25 FY23 FY24 9M-FY25 FY23 FY24 9M-FY25 Net Debt to Equity (X) ROC
Slide 31: Capital Market Information
CAPITAL MARKET INFORMATION SHARE PRICE UP TO 31st December, 2024 50% 40% 30% 20% 10% 0% -10% -20% -30% Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 AARTIPHARM Sensex PRICE DATA (AS ON 31st December, 2024) INR SHAREHOLDING PATTERN (AS ON 31st December, 2024) 5.0
Slide 32: Disclaimer
DISCLAIMER Aarti Pharmalabs Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all event
Slide 33: Thank You
THANK YOU AARTI PHARMALABS LIMITED